When is Factoring a Good Idea – Winston Rowe & Associates

Oct. 20, 2014 - PRLog -- Factoring For Small Businesses


In these times of tightening credit, it is more important than ever to have a specialist working to secure the apartment building financing you need. Winston Rowe & Associates specializes in difficult to place loans, providing private funding solutions when needed, and securing institutional financing.

Many small and middle market companies experience cash flow issues at some point during their existence. While circumstances and solutions may vary widely, one of the options for companies in this situation is factoring, otherwise referred to as receivables financing.

Factoring has some perception issues for certain business owners. Because payments go through a third party account they worry that customers will perceive their business as failing.

The truth is that factoring is an effective method for improving cash flow and managing receivables. Customers of the business still make payments to the small business, merely sending it to a different address. Factoring can detect problem accounts more quickly, accelerate working capital intake to fuel growth, and make planning easier for the entrepreneur by making the timing of his cash intake more predictable.

What are the situations where factoring makes sense for a business? There are a number of scenarios that factoring can be used to make a positive impact on a company. Companies that suddenly experience a rapid increase in orders and do not have the available cash or borrowing ability to produce those orders can factor invoices to generate the cash needed to fill those orders. Young firms that have revenues but need working capital for further business development can get the necessary cash quickly to accelerate growth.

Finally, firms that experienced a temporary decrease in revenues that drained its financial resources but have a solid turnaround plan in place can use factoring to provide the cash necessary to implement that plan.

Factoring is an effective financial tool that provides an alternative for companies that need working capital but cannot obtain it from their bank.

Winston Rowe & Associates has some of the most aggressive rates and terms available, while managing every step of the financing process from document collection to commitment negotiation and closing.

They can be contacted at 248 246 2243, a principal is always available to take calls or visit them on line at http://www.winstonrowe.com